Analysis: Reformer Quinn faces mighty obstacles

Chuck Sweeny

Friday

Jan 30, 2009 at 12:01 AMJan 30, 2009 at 7:32 PM

Patrick J. Quinn has worked in the minor leagues of power for three decades as a political reform activist, state treasurer and lieutenant governor. Thursday he was called up to the majors when Rod Blagojevich was thrown out of the governor’s office by the State Senate.

Patrick J. Quinn has worked in the minor leagues of power for three decades as a political reform activist, state treasurer and lieutenant governor. Thursday he was called up to the majors when Rod Blagojevich was thrown out of the governor’s office by the State Senate.

Quinn is now Illinois’ 41st governor, and an ambitious one at that. He’s vowed to “fumigate state government from top to bottom,” restore fiscal stability and conduct an open administration.

Hopes are high for the affable and self-effacing Quinn. But the state is in bad shape. Illinois has a $43 billion pension debt. There’s a $4 billion hole in the budget, “maybe more, no one really knows,” Quinn said. Tax revenue is declining in the wake of a severe recession. State agencies are being run by political cronies of the ex-governor -- some good, some not so much.

Social service and medical providers aren’t getting paid on time. And the roads, bridges and school buildings are crumbling.

Quinn will present a 2010 budget on March 18 that will address those jarring realities. He could propose tax increases, a severe reduction in spending, or a combination of the two. Quinn has not ruled out raising taxes, and the mood in Springfield is that taxes inevitably will go up, perhaps substantially.

One possibility is an increase in the gas tax by 8 to 10 cents per gallon, to fund a massive infrastructure bill. Also being tossed around is a one to two percent increase in Illinois’ three percent income tax to balance the budget.

“We have to tighten our belts wherever possible, focus on key priorities of government, public safety, education and decent health care. We’ll have a budget on the 18th of March that will be a proper one for times we find ourselves in ... We will find a way to have a fair system which hopefully keeps taxes as low as possible,” said Quinn.

Quinn has so far declined to talk about specific taxes he’d raise, saying he first needs to “assess the damage done by my predecessor.” Blagojevich did unusual things with the budget such as sweeping massive amounts of money from special-purpose funds to use in the general fund budget. The sweeps have depleted budgets, notably in the transportation and natural resources departments.

Quinn said that “education funding reform is a major issue.” In 2003, Quinn suggested raising school funding by doubling income taxes on people making more than $250,000 a year, and giving a $207 break to property owners. He has not said whether he still favors that idea.

Last December, Quinn said he’d name a commission to find loopholes that could be closed. One is the 1.75 percent commission paid to retailers on sales taxes they collect for the state.

“Back in 1930s, when this was enacted, they gave retailers the 1.75 percent because they had to calculate everything with pencil and paper. Now we have computers. The real cost of collection is far less than the commission,” he said. The collection bonus to retailers costs the state $200 million a year.

“If you cut it in half, you pick up $100 million. This is money the customer is already paying,” Quinn said.

The past six years featured a battle royale over taxes and spending between the ex-governor and House Speaker Mike Madigan, D-Chicago. Blagojevich vowed to hold the line on sales and income taxes, and in 2007 he proposed a gross receipts tax on businesses to fund a capital plan. That was nixed in the House on a 107-0 vote.

Now, the stalemate between the governor’s office and the legislature is over, said Quinn, who flew back to Chicago on Friday with the speaker and met that afternoon with the four other state officeholders.

“There’s going to be a new spirit of cooperation with the House, with the governor, and with the Senate, to solve problems,” said Senate President John Cullerton, D-Chicago.

Republicans, however, see that new spirit as a green light for united Democrats to raise taxes. It’s too soon to talk higher taxes, they say.

“We need to see what the federal stimulus package brings Illinois. There’s relief for the states in there that can help our budget problem,” said Sen. Dale Risinger, R-Peoria.

“If they raise gas taxes 8 to 10 cents it will devastate border areas,” said Sen. Dave Syverson, R-Rockford. “We have to make cuts before we think about raising taxes.”

REFORM

Quinn’s whole career is about political reform. He began the Citizens Utility Board and wrote the amendment that cut the size of the legislature. Thursday, he pushed a recall amendment, something that passed the House in 2008 but was derailed in the Senate by former President Emil Jones, Blagojevich’s close ally.

“I’d like to see recall on the general election ballot in 2010,” Quinn said.

Friday, Quinn proposed changing Illinois’ primary election date from February to September, similar to Wisconsin’s primary. And he signed an executive order establishing the Illinois Reform Commission to suggest further ways to root out corruption. The panel is chaired by former U.S. Attorney Patrick Collins, and its report is expected around Easter. Quinn said he expects it will recommend “strong medicine to root out corruption that has long afflicted our state.”

But Quinn may find it difficult to extract campaign finance reform and stricter ethics standards from the General Assembly. He’s always been an independent-minded outsider, and the leaders of both the House and Senate are old-line, regular Democrats.

Quinn probably will make some replacements in agencies and departments the governor controls.

“Each and every appointed person in a department, we’ll take a look at each and every one. Everybody will be under review,” he said. The ex-governor was famous for rewarding friends and contributors with key agency jobs.

Quinn won’t have much time to make progress. His term lasts roughly 700 days. He declined last week to say if he’ll seek a four-year term in 2010, but if he does he’ll have to begin campaigning this summer.

He’ll no doubt have powerful competition from people in both parties. Among those being mentioned is Attorney General Lisa Madigan, a Democrat. Republicans also see an opportunity to win back the governor’s seat. Doug Whitley, who heads the Illinois State Chamber of Commerce, has already announced his candidacy for governor, and DuPage County State’s Attorney Joseph Birkett also may run for the GOP nomination.

Quinn also promises to run an open administration. He said he’ll be accessible to lawmakers by being in Springfield and living in the executive mansion, unlike Blagojevich, who rarely came to the capital city. Even when he did show up in Springfield, the ex-governor flew back to Chicago before dark.

CAPITAL PLAN

Quinn promises to give high priority to a capital spending plan, which the state hasn’t had for nine years. But he said it can’t be just an old-fashioned “1956” roads plan.

“We have a federal stimulus plan that does not require match, which we have to spend in a prudent, quick way to get the economy going. At the same time we want to have a state capital construction plan a way to really build in a sustainable way, a green way,” Quinn said. He wants to invest in energy and water conservation projects as well as high-speed Internet infrastructure.

PARKS, PRISONS

One promise Quinn can deliver is to reopen the seven state parks and 10 historical sites closed by Blagojevich in the fall of 2008.

“I think both the parks and the historic sites should be open. History-based tourism, along with nature-based tourism, are the fastest growing types of tourism in the country. We want to have them open so the people can enjoy them. For every nickel you squeeze to close parks and historic sites, you lose a half-dollar,” Quinn said.

Quinn also promises to review the Blagojevich-ordered closure of Pontiac prison, and the ex-governor’s plan to move the Illinois Department of Transportation's transportation safety division from Springfield to Harrisburg in southern Illinois.

Chuck Sweeny can be reached at csweeny@rrstar.com.

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